Nvidia has developed location verification technology that could determine which country its AI chips are operating in, Reuters reports, citing a source, a capability that may help address ongoing concerns about the smuggling of advanced semiconductors to restricted markets like China. The feature, which Nvidia has demonstrated privately in recent months but has not released, would be an optional software tool that customers install. It taps into the confidential computing capabilities of Nvidia's GPUs and uses the time delay in communicating with Nvidia-run servers to approximate a chip's location.

The technology will first be available on Nvidia's newest Blackwell chips, though the company is examining options for its older Hopper and Ampere generations. U.S. lawmakers and the White House have pushed for location verification measures as the Department of Justice has brought criminal cases against smuggling rings allegedly attempting to move more than $160 million worth of Nvidia chips to China.

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